One of the chief concerns about Shariah-Compliant Finance has to do with zakat, the system of tithing in Islam that so often involves the funding of Islamic charities which in turn distribute money to violent Jihadist terrorist organizations, particularly HAMAS and Lashkar-e-Taiba.
Proponents of Shariah Finance act as if this concern is completely unfounded and that there are no problems with zakat or Islamic charities.
But that is clearly untrue. We frequently come across reports of fraud, waste and abuse in the system of zakat. Below, we’ve linked just such an article out of Pakistan today.
If zakat can be misappropriated in this way, why is it so hard to believe that zakat can end up in the hands of Jihadist terrorists when, after all, Shariah mandates it?